Charging low prices harms future sales

The Hidden Cost of “Cheap”: 
Why Pulled Wool Saddle Pad Makers Shouldn’t Undersell Their Work
In the world of handmade saddle pads—especially pulled wool saddle pads—there’s a common mistake many new or young makers make:  they price too low.
It’s understandable. When you’re just starting out, you want to sell. You want customers. You want your work out there. You may feel like you have to “earn your spot” by charging less than established makers.
But pricing too low doesn’t just hurt your business...it can hurt the entire industry.
Let’s talk about why.
1. Low Prices Devalue Skilled Work
Handmade saddle pads are not factory products. They require:

• Quality wool, and durable materials
• Readily available yet specialized tools
• Time and physical labor
• Knowledge of fit, pressure distribution, horse comfort, and pad performance

When you charge bargain prices, you unintentionally send a message that this level of craftsmanship isn’t worth much. Customers begin to expect custom, handmade quality at mass-produced prices.
That’s a dangerous precedent.
Once buyers get used to paying less, it becomes harder for any maker to charge what the product is truly worth.
2. It’s Unsustainable for You
Young makers often forget to account for:

• Material costs (which continue to rise)
• Production facility costs (square footage of work space, utelities, etc.)
• Marketing expenses (inc. selling costs is supporting (3%) transaction fees and card readers, annual web support and domain fees, trade show booth space and travel costs)
• Shipping supplies [(boxes, office expense,  etc. and always ship "insured"), don't quote shipping costs in ads.  What if you end up shipping abroad, or across 4-time zones?  Buyer pays shipping.  Period.]
• Taxes (including sales pending location of event, income tax.  
• in Idaho I'm considered Sole Proprietor and this ends up being "Farm Income" for me)
• Your own hourly wage (the tricky part:  don't undervalue your time!)

If you’re not paying yourself fairly, you don’t have a business—you have an expensive hobby.
Burnout happens fast when you’re working long hours and barely breaking even. Many talented young makers quit not because they lack skill, but because their pricing made survival impossible.
3. Competing on Price Attracts the Wrong Customers
Customers who shop based only on the lowest price often:

• Compare you constantly to cheaper alternatives
• Question your value; ask for discounts or find loop holes trying to lower your price
• Expect more than what they pay for 

Customers who value quality are willing to invest in it. Competing on craftsmanship, durability, functional useability, the horse-to-rider experience builds a stronger long-term customer base than competing on “cheap.”
4. It Undercuts Fellow Makers
When new makers enter the market significantly underpriced, it creates a "race to the bottom."
A healthy handmade market works best when makers respect:

• The true cost of materials; value of skilled labor; integrity of the craft

Fair pricing protects everyone.
5. Higher Pricing Builds Confidence
Pricing appropriately communicates confidence.
It tells buyers:

• You believe in your product; you understand its value; you stand behind your workmanship.

Ironically, many customers trust higher-priced handmade goods more than cheaper ones. Price often signals quality.
6. How to Price More Responsibly
If you’re a new saddle pad maker, consider:

• Calculating true material cost per pad
• Tracking your hours honestly
• Paying yourself a realistic hourly wage
• Adding overhead costs
• Building in a profit margin for growth

Then stick to it.
But don’t make “cheap” your identity.
The Bigger Picture
The handmade saddle pad world—especially pulled wool saddle pads—depends on skilled makers who stay in business long term.
When young makers price sustainably:

• The craft survives
• Standards stay high
• Customers receive quality
• Makers thrive

Low pricing might get quick sales.
Fair pricing builds a legacy.
If you believe in your work, price like it matters—because it does.

I welcome your thoughts and questions to the Makers Stall where we can share, learn, and preserve the art of Pulled Wool Saddle Pad Making!
​~Diane